Karachi: Systems Limited (SYS), in a decisive move to enhance its global presence, announced the acquisition of British American Tobacco SAA Services (Private) Limited from British American Tobacco International Holdings (UK) Limited. The acquisition, approved during the company’s board meeting on July 29, 2025, aligns with SYS’s strategy to bolster its market position and accelerate growth.

The acquisition is set to be financed through SYS’s available cash and short-term investments amounting to PKR 3.8 billion. BAT SAA Services provides a range of IT and digital business services, including customer support, marketing operations, and supply chain services across various regions. These services complement SYS’s existing business process outsourcing offerings.

In a related strategic move, SYS’s UAE associate, Techvista Systems FZ LLC, has entered into a Master Services Agreement with Accenture (UK) Limited. This agreement, also dated July 29, 2025, will see Techvista providing AI-powered services as a sub-contractor through BAT SAA Services. This aligns with SYS’s “AI-first” strategy, aiming to integrate AI capabilities across all business functions.

The acquisition and partnership agreements are pending regulatory approvals and fulfillment of certain conditions. SYS’s investment perspective remains optimistic, with a ‘BUY’ stance supported by increasing IT exports, improved gross margins due to consolidation, and a strong presence in the MEA region.

The company’s strategic initiatives are expected to drive growth, with a target price of PKR 176 per share by December 2025, indicating a potential upside of 48 percent.